MEDIA STATEMENT

Attention: News Editors and Journalists 14 October 2026

For Immediate Release

SANPC Refinery: Keeping Fuel Flowing While the Refinery Is Rebuilt

Cape Town, South Africa: SANPC Refinery Managing Director Sesakho Magadla today set out how the company is phasing the rebuild of its Durban refinery. She was speaking at African Energy Week 2026 on the panel From Resources to Reliable Energy, moderated by Oneyka Cindy Ojogbo of CLG. The other panellists were Nneka Arowolo (Levene Energy), Aune Amutenya (Republic of Namibia) and Vibhuti Jain (DFC).

Ms Magadla said the Central Energy Fund took a long-term strategic decision to acquire the refinery from Shell and BP and rebuild it as a new 400,000 barrel-per-day facility. That is not an instantaneous undertaking, so SANPC is following a phased approach.

“The first phase is to make sure that we minimise fuel supply disruption to the end user while the refinery is under construction,” said Ms Magadla. In this phase, SANPC Refinery is prioritising the working import terminal, pipelines and storage tanks that handle finished product.

In parallel, feasibility, technical, socio-economic, and financial-modelling work is under way to support a final investment decision. Any FID will be subject to approval by all the relevant authorities, both within the CEF Group and in Government. Ms Magadla said the commercial arrangements, whether blended finance, foreign direct investment, South African private capital, or the state, must give certainty on where the money comes from. “The business case must give comfort that there will be recoveries in future for the cost,” she said.

She added that using existing logistics infrastructure keeps supply secure, generates income to cover operating costs while the studies proceed, and lowers the cost and shortens the timeline of the refinery build.

On execution, Ms Magadla said: “Circumstances inevitably change. As you implement a plan, unforeseen obstacles arise, but that does not mean you should stop and rewrite the rules.”

The panel agreed that policy certainty and disciplined execution reinforce each other in moving African energy projects to delivery.

For more information, contact: Jacky Mashapu

Cell: 081 011 7528

Email: jackym@cefgroup.co.za